Once again, Metaplanet Inc., also known as “Asia’s MicroStrategy,” raised 10 billion yen (about $68 million) in a recent share sale. The purpose of this significant investment is to support its aggressive economy Bitcoin acquisition strategy.
Similar to the tactics of well-known companies like MicroStrategy, this move comes as the company continues to position itself as a major player in the cryptocurrency sector.
Metaplanet: Significant investment in Bitcoin
With more than 13,000 individual shareholders participating, Metaplanet announced on October 22 that it had successfully completed its eleventh round of share acquisition rights. This money will be used to purchase more Bitcoin so that the company can expand its already significant assets.
*Metaplanet announces results of exercise of share purchase rights* pic.twitter.com/MquO6JFNEX
— Metaplanet Inc. (@Metaplanet_JP) October 22, 2024
Metaplanets stock price fell by around 5.85% despite the successful funding, which was indicative of some market instability amid changing Bitcoin values.
“With this financing, we can continue to strengthen our Bitcoin reserves and provide our investors with a hedge against Japan’s economic challenges,” CEO Simon Gerovich said in a statement, underscoring the importance of the financing.
Since earlier this year, the company has been actively buying Bitcoin as it sees it as a strategic asset that can help limit the risks posed by the yen’s decline.
BTCUSD trading at $67,485 on the daily chart: TradingView.com
A growing portfolio of Bitcoin
Metaplanet has already shown success with its most recent acquisition strategy. Just a few weeks before this investment announcement, the company paid 1 billion yen (about $6.7 million) to acquire another 107.91 BTC, bringing its total holdings to about 855 BTC. Because of MicroStrategy’s unique approach to cryptocurrency investing, this aggressive accumulation demonstrates a commitment to using Bitcoin as a treasury reserve.
Since launching the Bitcoin strategy, the company’s shares have seen impressive growth, up about 500% so far this year. Despite sporadic declines in the larger cryptocurrency market, investors have responded positively to Metaplanet’s stated vision and commitment to the digital asset space.
Impact on the market and prospects for the future
The fundraising comes at a time when Bitcoin is being confronted resistance at approximately $69,000. However, Metaplanet never abandons its mission to increase its inventory.
The company has tested many strategies to improve its investment push, some through Bitcoin options trading and others through strategic partnerships with market finance giants such as SBI Group.
All eyes will be on how these investments perform in an often-changing market, as Metaplanet prepares to use its freshly acquired funds for more acquisitions.
Metaplanet aims to be one of the largest corporate holders of Bitcoin in Asia, promoting itself not only as an investor but also as a leader in the integration of cryptocurrencies into conventional finance.
Featured image from Envato Elements, chart from TradingView